Category archives: Real Estate

Is The Canadian Housing Market In A Bubble? Interview With Seth Daniels of JKD Capital

Last update on Oct. 16, 2017.

Image Credit: Hannamariah / Shutterstock.com

 

The following is the transcript of the conversation I (Jin Choi) had with Seth Daniels, who is the managing partner of JKD Capital. JKD provides research and analysis to the Libertas Real Estate Opportunity Fund, a fund for accredited Canadian investors dedicated to protecting against a downturn in the Canadian housing market.

Jin: Could you start by introducing yourself?

Seth: Sure. I’ve been in the hedge fund business since 2000. I started off working for one of the pioneers of growth investing at the tail-end of the dot com and biotech ...

Continue reading

I Bought A House, And This Is How Much It Will Really Cost

Last update on Nov. 28, 2016.

Image Credit: kurhan / Shutterstock.com

 

Recently, I made the worst financial decision in my life. I bought a house.

I say this half tongue in cheek. Half, because I didn’t buy the house for investment reasons. Half, because owning the house will cost me.

In this article, I decided to share some financial details surrounding the purchase of my house and give my thoughts on those details.

Let’s start with the price I paid for the house. I don’t want to share exact details, but the price is in the region of $350,000. In London ...

Continue reading

Should You Hold REITs as Part of Your Portfolio?

Last update on June 4, 2015.

Real estate development

 

Some people have asked me whether I thought REITs deserved a place in their investment portfolios. 'REIT' stands for Real Estate Investment Trust, and REITs are special types of companies that own real estate that also offer certain tax advantages to their shareholders.

In this article, I’ll explain what makes REITs special, and give my thoughts on whether it’s a good idea to invest in them today.

 

How Dividends Are Normally Taxed

Let me explain how REITs are special by contrasting them against normal corporations.

Let’s say that company XYZ, a normal corporation, made a profit of $10 ...

Continue reading

Rich Dad Real Estate Workshop Review

Last update on Sept. 23, 2014.

 

 

Recently, I heard a radio advertisement for a free ‘Rich Dad’ real estate workshop.  You may have seen or heard the same, advertising a free, two-hour informational workshop on real estate investing. These workshops are hosted in major Canadians centers on a fairly regular basis and offer motivated people the opportunity to learn how to build wealth through real estate investing.

It’s been about two years since I attended such a workshop. If you google it, there’s a lot of controversy surrounding these workshops, and a lot of accusations of it being a scam.

So what’s the deal ...

Continue reading

Does Saving On Rent Make Your House A Good Investment?

Last update on Nov. 20, 2013.

A nice big house: If you buy this house and live in it, at least you won't have to pay rent. Does this make the house a good investment?

 

In my book 'The Short Book On Investments', I cautioned my readers not to look at a house as an investment. But as a few people pointed out, the discussion was incomplete. 

I failed to consider the rent not paid (called 'imputed rent') in the discussion of investment returns.

When you own a home, the rent that you don't pay is like an income stream. Money saved ...

Continue reading

Variable Or Fixed Mortgage - Which Should You Choose?

Last update on Aug. 26, 2013.

Bank sign

Bank: To make wise decisions on choosing between fixed and variable mortgage rates, it's helpful to understand how banks set the fixed rates.

 

Just 6 months ago, you could get a 5-year fixed rate mortgage from BMO for 2.99% a year, a historic low. Last week, the same bank announced that it will increase their rate to 3.79% a year.

Just to give you an idea, if you took out a $300,000 mortgage at 2.99% a year with a standard 25 year amortization, you would pay $1,418 a month. On the other hand ...

Continue reading

Pitfalls Of Using Housing Price Indices

Last update on Aug. 11, 2013.

New York apartments

Apartments: Is your apartment or house worth more, just because the average selling price in your city went up?

 

Around the 20th of each month, we send out updates on the housing market in our newsletter. When we do so, we use Teranet's House Price Index. Many sources in the media, however, report the changes in average prices. Numbers from these two sources are not the same.

This matters.

Let me illustrate why using an example.

A Bungalow And A Mansion

Suppose there are two houses on the market. One is cheap (maybe it's a small bungalow ...

Continue reading



Web Analytics